Nasdaq Once Again Sends FangDD Non-compliance Warning

The Chinese real estate marketplace operator FangDD has once again been warned about its continued non-compliance regarding share prices.

FangDD is listed on Nasdaq, the New York stock exchange, which requires company shares to retain a minimum value of $1 per share to remain listed.

The company’s Class A ordinary shares closed below $1.00 U.S. for 30 consecutive business days from mid-November, prompting another warning from Nasdaq that the firm needs to recover its share price to remain listed. Its previous warning came in mid-2023.

If unsuccessful, FangDD may be eligible for an additional 180-day compliance period, provided it meets certain Nasdaq Capital Market listing requirements and expresses intention to cure the deficiency.

FangDD briefly regained marginal compliance in October 2024 after 2023's warning—but share prices soon settled well below the minimum required value and closed at $0.65 on December 27.

FangDD now has until June 23, 2025 (a 180-day period) to regain compliance by maintaining a closing bid price of at least $1.00 for a minimum of ten consecutive business days.

FangDD is a microcap business. While the exact range can vary, microcap companies typically have a market capitalization between $50 million-$300 million. By comparison, FangDD's current market capitalization of circa $21.5 million makes it a comparatively 'weak' public company.

Added to the mix is FangDD's domestic market, China, which has been obliterated since the breakout of the COVID-19 pandemic in 2020, which started less than a year after FangDD went public in 2019.

The company's most recent financial results, released in September, saw FangDD scrape a net profit of $2.3 million in the first half of 2024 from revenues of $19.3 million, with chairman Chairman Xi Zeng commenting that the Chinese market has experienced a "second bottoming-out".